Apollo Global To Invest Rs 2250 Crore In Welspun Group

Global private equity firm Apollo Management to invest up to Rs 2250 crore in Mumbai-based Welspun Group, which owns a major producer of Welspun Pipe Corp Ltd (CMT). Much of what is one of the largest capital investment in recent times, it should be completed before August 12, 2011.

"The Board of Directors of the CMT, Welspun MaxSteel Limited (WMSL) and Welspun Infratech Limited (Witt) have carefully examined and decided to accept the investment proposals in the meetings of June 29, 2011 Apollo, and these tips universally considered this operation as a positive, a milestone in the path of the Welspun Group, "Welspun Corp. said in a statement.

As for the plan, to invest Rs 1,305 Apollo crore, including Rs 788 Crores asset allocation of the FCD / CCD (Fully / mandatory convertible bonds). Private equity firm to acquire the entire share WMSL promoter for a total consideration of Rs 140 crore and made an additional investment of Rs 130 crore capital expenditure.

In addition, Apollo and its subsidiaries are also active topics of WCL WITL branch, to investigate further investment up to Rs 675 crore in WITL form of debt, equity or a combination of these.

BK Goenka, President, Welspun said, "We are extremely pleased to have the Apollo one of our key stakeholders. Apollo is one of the largest fund managers in the private equity world. Welspun Investments of Apollo is a landmark transaction is The Indian capital market and demonstrates the confidence Welspun Group Management, a global company serving some of the largest oil and gas companies in the world, and our shared vision of the future of the industry."